Avalon Technologies Limited has delivered impressive financial results for the third quarter of FY26, showcasing strong growth momentum in its electronics manufacturing services business. The Chennai-based company announced its unaudited standalone and consolidated financial results for the quarter ended December 31, 2025, following board approval on February 4, 2026.

Consolidated Performance Highlights

The company's consolidated operations demonstrated exceptional growth across key financial metrics during Q3FY26:

The strong revenue growth reflects increased demand for the company's electronics manufacturing services. While EBITDA grew significantly in absolute terms, the margin compression to 11.52% from 12.33% indicates some pressure on operational efficiency despite overall robust performance.

Standalone Business Performance

Avalon Technologies' standalone operations also recorded robust performance during the quarter:

The standalone business maintained healthy profit margins, with profit before tax growing faster than revenue, indicating effective cost management and operational leverage.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, Avalon Technologies sustained its growth trajectory:

Business Operations and Outlook

Avalon Technologies operates exclusively in the electronics manufacturing services segment, providing capabilities in printed circuit board assembly, custom cable and wire harnesses. The company's consolidated results include performance from its subsidiaries: Avalon Technology and Services Private Limited, Sienna Ecad Technologies Private Limited in India, and ABV Electronics Inc. in the United States.

During Q3FY26, the company allotted 45,034 equity shares upon exercise of employee stock options, with 4,17,055 options remaining outstanding as of December 31, 2025. The company's paid-up equity share capital stood at ₹133.52 million with a nominal value of ₹2 per share.

Regulatory and Operational Updates

The company has recognized the impact of new Labour Codes notified by the Government of India, effective from November 21, 2025. Management assessed the incremental impact as not material to the financial results for Q3FY26, with further evaluation planned upon notification of relevant rules by Central and State Governments.

The financial results were reviewed by the Audit Committee and approved by the Board of Directors, with statutory auditors Varma & Varma providing limited review reports for both standalone and consolidated results. The results demonstrate Avalon Technologies' strong positioning in the growing electronics manufacturing services market.

Avalon Technologies Limited has announced that India Ratings and Research (Ind-Ra) has upgraded the company's credit rating outlook to Positive from Stable while affirming the existing ratings on its bank loan facilities. The development was communicated to BSE and NSE on January 30, 2026, in compliance with SEBI disclosure requirements.

Rating Details and Outlook Revision

India Ratings and Research has maintained its ratings while improving the outlook assessment for Avalon Technologies' financial instruments. The rating action demonstrates the agency's enhanced confidence in the company's credit profile and future prospects.

Regulatory Compliance and Timeline

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The rating revision provides stakeholders with updated information about the company's creditworthiness assessment.

Credit Rating Significance

The positive outlook revision by India Ratings and Research indicates an improved assessment of Avalon Technologies' credit fundamentals. This development may enhance the company's access to banking facilities and potentially reduce borrowing costs. The affirmation of existing ratings alongside the outlook upgrade suggests stability in the company's current credit standing while acknowledging positive momentum in its business operations.

The rating agency's press release detailing the rationale behind this decision is available on India Ratings and Research's official website. Company Secretary and Compliance Officer Ajay Shukla signed the disclosure document, ensuring proper regulatory compliance and stakeholder communication.